Unless you’re active military personnel moving for a change of station, you can no longer deduct business moving expenses. The 2017 Tax Cuts and Jobs Act, suspended the deduction for moving expenses, effective starting in the 2018 tax year.
Who Can Deduct a Move on Their Taxes?
Even if you’re an active military member, you must meet some additional requirements to qualify for this deduction. You have to have moved because of a permanent change of station, which is defined by the IRS as a move to your first post, a move between posts, or a move from your last post to your home as you end active duty. You may also qualify for this deduction if you’re a spouse or dependent of an active military member who deserts, is imprisoned, or dies and you have to move.
What Can They Deduct?
Qualified military personnel can deduct expenses of moving their household goods and the costs of travel for members of their house. Under the Tax Cuts and Jobs Act, they are also the exception and still qualify to exclude moving expenses reimbursements from their income.
Business Moving Expenses and Employees
For tax years 2018 through 2025, nonmilitary taxpayers (including any of your employees) can’t deduct certain moving expenses. In addition, if you reimburse employees for moving expenses, you must include the amount of those reimbursements in the employees’ wages.
What You May Not Deduct as Business Moving Expenses
Even if you still qualify, you may not deduct moving expenses that are not directly related to the move of your business, and you may not deduct personal moving expenses that do not meet the IRS distance or time test. Meals are not deductible as a moving expense unless you can provide documentation that they were directly associated with the business move rather than your personal moving expenses. For example, if you followed the van carrying your business equipment to its new location and you directed the unloading, you may be able to deduct the costs associated with that trip as a regular business travel expense, including lodging and meals. You may not deduct personal move expenses if you do not move within one year from the date you began work at the new location unless you can show that you were prevented from moving during that time.
